Suspension of the tax, “solidarity fund for entrepreneurs”… The president of the Republic has drawn several measures to support businesses affected.

The war against the Covid-19 is not only health. It is also economic. The president and Emmanuel Macron has promised on Monday night, during his address to the French, a total support of the State in order to avoid business bankruptcies and massive layoffs.

This war “to be sustainable, it will be violent (…), it must mobilize all our forces”, said on Tuesday the Economy minister Bruno Le Maire. at the micro RTL, the announcement of a support plan for 45 billion euros for the companies and the employees.

300-billion-euro guarantee for the bank loans

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a key Measure expected by the companies : “the State guarantees in the amount of 300 billion euros for all the bank loans contracted from banks”, announced Monday evening by the head of State during a speech to the nation.

The major companies are at risk of the other hand to turn to banks for financing, while the bond market has largely dried up, hence the importance of ensuring the soundness of a banking system that could quickly be faced with an explosion of bad debt.

A solidarity fund of 1 billion euros

A solidarity fund of 1 billion euros, “minimum” will also be created “for micro-entrepreneurs, for smaller businesses, for the self-employed, who have less than a million sales” and who “have lost, between march 2019 and march 2020, 70% of their turnover,” said the minister of Economy.

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“We want that solidarity plays in full,” said Bruno Le Maire. “We’ll keep it simple. We are going to be massive and we’re going to make solidarity : 1500 euros, is the base rate that will be guaranteed in lump form to any company that would go down in this field”, he detailed. This fund “is to provide a safety net to all those who do not fall into any of the other aids that are being made.”

Taxes and contributions suspended

Monday evening, the president of the Republic has also taken targeted measures for small companies, after those already announced deferral of taxation and social charges, and partial unemployment are supported beyond the Minimum wage. The survival of the fabric of SMES is crucial for restarting the economy after the crisis, and would reduce the degradation of the welfare state.

“For the smaller ones among them, and as long as the situation lasts, those who are facing difficulties there will be no cost, or for taxes or for social security contributions”, said Emmanuel Macron, who has not specified what would be the size of the companies involved.

Bills and rent hanging

“The bills of water, gas, electricity, and the rent shall be suspended” for these companies, he said.

significant fixed costs will also be reduced by the economic rents, particularly for the businesses forced to lower the curtain.

unemployment partial supported

The State will support “full” partial unemployment claimed by the companies affected by the spread of the novel coronavirus, had also said Friday the minister of Labour Muriel Pénicaud.

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“Covid-19”, the new coronavirus

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“companies were reluctant saying that they did not have the means to take care of it (…), here we shall refund the full 100% of the part-time unemployment”, including beyond the minimum wage, said the minister on Franceinfo. “We’ll take that into consideration on the budget of the ministry of labour.”